Forex trading can be a lucrative market, but its kind of like the Old West. You can strike it rich if youre lucky, but plenty of people think you might be their meal ticket. How do you avoid be scammed?

* Do you Forex Traders are using Forex Signals to Make Money from Currency Trading? Check out this article I published awhile ago.

Be Patient

You can make money in Forex trading, but you can also lose all of your money, including your original investment. Some sites wont mention that.

Theyll only talk about how much money you will make and how quickly it will happen. You will not get rich overnight with legitimate trading, and anyone promising that is trying to scam you.

Look over the brokers site and see if there are big disclaimers about potential losses, as these sites are more likely legitimate.

 Look For Fees

  Is the broker youre looking at offering free trades? Your broker needs to make money too. If it isnt obvious how they are making their money, then it is probably a scam.

Some brokers, referred to as Market Makers, profit when you lose money on trades. Youll want to avoid these brokers.

 Follow Your Friends

  Do you have friends that are also trading in Forex? If not, join an online community and make some. Reviews from real people of sites are a good indicator that the site is not a scam.

Make sure that when youre looking at a review, the account doing so has a history with the community of making posts other than endorsements.

The world of Forex trading has plenty of helpful people in it if you take the time to look. Dont trust the testimonials or reviews the site itself has posted.

Try Them Out, Carefully

• Demo the broker. Many Forex brokers offer demo accounts. This should always be your first step, so you can see how everything will work. If the demo account looks good to you, put a small amount of money into a real account.

• Make a trade. Making the trade will allow you to be well-informed about the fees attached to future trades. If youre being charged more than advertised on your trades, thats a scam.

• Withdraw your money. After youve completed one or two small trades, try to withdraw your remaining money. Many scam sites make this incredibly difficult if not impossible. A legitimate Forex broker will let you easily withdraw you funds.

Forex trading is a growing market, with opportunities to make money. Just keep an eye out for broker scams.